Our 18 year old daughter started working as an intern this year, while studying in college, and is expected to earn about $6,000-8,000/year. This is definitely great as it partially offsets her college expenses (about $25,000/year), that we are paying. However, this also increases our family income and I would like to see if we can reduce the tax hit. I am sure this is a common occurrence and hope the knowledgeable folks here can guide me, as my knowledge of these tax issues is very limited.
1. We filed as married joint for 2009, with my daughter as a
dependent. Will that still work for 2010, now that she has a
2. We are not eligible to contribute to ROTH because of our high
income as a family. If my daughter opens a ROTH, does she need to
file a separate tax return? In that case, I believe I cannot claim
her as a dependent.
3. If we are paying for her college education, is this considered as
some kind of gift which is taxed?
Thank you for all your help.
- posted 9 years ago